Bank fraud CBI chargesheet Rs 297 crore loss IDBI Dena Indian Overseas Bank

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The Central Bureau of Investigation (CBI) has today filed a chargesheet before Special Judge for CBI cases, Mumbai against 24 accused including a private company based at Mumbai, its director, Chartered Accountant, then officials of Indian Overseas Bank, Directors/proprietor of associated companies/firms etc for causing an alleged loss of Rs 297.80 crore (approx) to the bank.

It was alleged that the accused allegedly aided in diversion and facilitated in siphoning-off funds by way of submitting fake and forged purchase invoices/LCs. It was also alleged that the said company had availed credit limits from various banks and financial institution. Out of these nationalized banks, Indian Overseas Bank Mumbai Branch has disbursed credit facilities to the tune of Rs 292.20 crore (approx) under consortium arrangement.

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The company had allegedly adopted a modus operandi for availing huge loan from the banks and financial institutions on false and fabricated balance sheets with inflated sales which were submitted to the bank and other financial institutions. It was further alleged that for inflating the sales, the accused floated other firms and shell companies and made the employees/friends as directors of the company.

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Thereafter, the loan proceeds were circulated among those companies under the guise of LC transactions without doing any actual business. The  company also submitted the alleged false bills and received the LC proceeds and diverted the proceeds to real estate business. The huge amount were allegedly diverted to various Realtors of Mumbai.

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During investigation, it was alleged that accused devised the methodology known as netting. They had concealed/suppressed the actual amount of borrowing liabilities. Loans availed outside the consortium banks were not shown in the balance sheet. The additional amount of loan were allegedly adjusted against investments made in Real Estate and other businesses. It was also alleged that the company misrepresented the facts and inflated the sales, stock holding levels and trade debtors in the balance sheet.

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It was further alleged that the bank officials had shown undue favours during the processing, sanctioning and enhancement of loan from time to time. CBI had registered several cases against the accused including the said private company based at Mumbai, directors & others.

After investigation, chargesheets in 7 cases have been filed for causing an alleged loss to various banks, such as, Indian Overseas Bank to the tune of Rs.297.80 crore (approx); SBT to the tune of Rs 133.61 crore (approx), Dena Bank to the tune of Rs 183.83 crore (approx), Corporation Bank to the tune of Rs 60 crore (approx), IDBI Bank to the tune of Rs 40 crore (approx), SBI to the tune of Rs 122.07 crore (approx) and EXIM Bank to the tune of Rs 80.30 crore (approx).

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The said private company of Mumbai purportedly engaged in manufacturing of Aluminum Foil Containers, Aluminum Foil Rolls, Lids and other related products etc.

The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.

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